Mumbai, 5th July 2024: TeamLease Services, India’s leading staffing conglomerate revolutionizing employment, employability, and ease of doing business, released its ‘Consumer Durables & Electronics – A Staffing Perspective Report’ offering comprehensive insights into the country’s rapidly growing consumer durables and electronics sector. As India cements its position as the world’s fastest-growing major economy, the report anticipates the nation becoming the third-largest consumer market by 2027. The workforce in this sector will be crucial in enhancing its capacity to serve its intended beneficiaries and effectively attain sustainable growth. The report highlights the critical role of this workforce in meeting the sector’s demand for diverse talent swiftly and efficiently.
In the report, TeamLease Services identified high-demand temporary roles, including in-store promoters, service technicians, supervisors, sales trainers, channel sales executives, customer support executives, warehouse in-charge, tele support executives, and electronics engineers, as pivotal to the consumer durables and electronics industry’s growth. The report’s comprehensive market segmentation and size analysis cover a broad spectrum of consumer durables—from small appliances like kitchen appliances, LED lights, and electric fans to large appliances such as ACs, refrigerators, and washing machines—and consumer electronics including TVs, mobile phones, computing devices, and digital cameras. Notably, the AC market is projected to reach $5.8 billion by 2028 with a CAGR of 15%, while the mobile phone market is estimated to reach $61.2 billion by 2028, growing at a CAGR of 6.7%.
A demographic profile of the temporary workforce reveals it is predominantly male (94%), with an average age of 31 years and a tenure of 2.8 years. More than half of this workforce has education levels below the 12th standard and hence, appropriate training is required to develop specific skill sets to ensure productivity.
TeamLease Services’s report also provides an in-depth geographic analysis, revealing that the temporary workforce is concentrated primarily in the South region. Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh, and Telangana are the top five states experiencing the highest growth in temporary jobs. At the city level, Bengaluru, Hyderabad, Chennai, Kolkata, and Mumbai drive temporary job growth. The report also examines compensation trends, noting variations in average annual CTCs and incentives across regions and city tiers, with the highest yearly CTCs in metro cities and the highest average monthly incentives in tier 2 cities.
Attrition remains a significant challenge, with the report differentiating between regrettable attrition (22% of high-performing employees exiting) and non-regrettable attrition (31% of employees who have not earned incentives). The cost of attrition to the organization with 1000 employees is approximately ₹3.64 crore. The opportunity cost due to attrition specific to the in-shop promoter role is approximately ₹118.6 Crore for an organization of 1000 employees.
Balasubramanian A, Senior Vice President at TeamLease Services, emphasized, “Attrition is a persistent obstacle that can substantially impact an organization’s bottom line and growth prospects. Our report uncovers over ₹100 crore opportunity cost pertaining to lost revenue for a mid-sized firm, highlighting the urgent need for businesses to address this issue proactively. Tackling attrition is not just a cost-saving measure but an investment in the sustained growth and competitiveness of our manufacturing and retail powerhouses. We must reimagine talent management strategies to attract, nurture, and retain temporary workforce.”
Kartik Narayan, CEO of Staffing, TeamLease Services Limited, highlighted, “Understanding the specific needs and dynamics of the temporary workforce is crucial for driving sustainable growth in the consumer durables and electronics sector. As India establishes itself as the world’s third-largest consumer market, we have a generational opportunity to reimagine workforce solutions. Our report provides actionable insights to help businesses optimize staffing strategies and enhance operational efficiency, paving the way for a brighter future”
The report also reveals TeamLease Services’s successful case studies, showcasing their expertise in implementing tailored solutions to address clients’ workforce challenges. These solutions include restructuring salary frameworks, providing customized training programs, and implementing end-to-end workforce management solutions. These initiatives have resulted in substantial cost savings, reduced attrition rates, and improved employee engagement and productivity.